Crypto Lending Firm Genesis Faces 9-Figure Loss Amid 3AC Exposure

Crypto market maker and lender Genesis Trading may suffer a 9-figure loss due to its exposure to troubled crypto firms Three Arrows Capital (3AC) and Hong Kong-based lender Babel Finance. Exposure to Three Arrows Capital and Babel Finance According to anonymous sources familiar with the situation, the losses at Genesis are in part the exposure to over-leveraged hedge fund Three Arrows Capital and Hong Kong-based crypto lender Babel Finance and are on the order of “a few hundred million dollars.” The losses come as the collapse of Three Arrows Capital sends shockwaves across the crypto lending industry, with numerous firms facing substantial losses from their exposure to the fund. Commenting on the move, CEO of Genesis, Michael Moro, said: “As we already stated on June 17, we mitigated our losses with a large counterparty who failed to meet a margin call to us. We sold collateral, hedged our downside, and moved on. Our business continues to operate normally and we are meeting all of our clients’ needs.” Earlier this week, a court in the British Virgin Islands ordered the liquidation of Three Arrows Capital (3AC). Similarly, Babel Finance announced last week that it has reached “preliminary agreements” on debt repayments to counterparties to ease the liquidity pressure, but withdrawals have been frozen for two weeks.The post Crypto Lending Firm Genesis Faces 9-Figure Loss Amid 3AC Exposure appeared first on Cryptoknowmics-Crypto News and Media Platform.